China launched an investigation into Kevin Garratt and Julia Dawn Garratt, a Canadian couple who owns a coffee shop in Dandong near the North Korean border, for suspected spying, Xinhua news agency reported.

In a case being handled by the State Security Bureau of Dandong, the owners of Peter's Coffee Shop are suspected of stealing military and state secrets that are crucial to China's national defense research. The Canadian embassy in Beijing said it received reports about Chinese authorities detaining two Canadians in a spying investigation, The Guardian relayed.

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The consular officials of Canada's embassy are on standby to grant the required assistance to the Canadian couple, embassy spokesperson Mary Anne Dehler said in a statement.

According to Canadian newspaper The Globe and Mail, the couple moved to China in 1984 and opened the coffee house in 2008. The former teachers' whereabouts are now unknown, the report said.

In China, state secrets law covers a broad area ranging from industry data to state leader's birthdates. Severe cases are punishable either with a life sentence or a death penalty.

The probe comes one week after Canada singled out Chinese hackers for targeting the National Research Council's computer network and filed a complaint with Beijing. China responded by saying Canada's accusations were baseless and irresponsible.

Peter's Coffee Shop has an English Corner Club that conducts weekly English conversation lessons for Chinese people.In addition to the coffee shop, the Garratts run another business involving North Korean tours, The Globe and Mail said.

The conservative government of Canada has a history of rough ties with Beijing since 2006. Prime Minister Stephen Harper remained distant because of his concerns on human rights issues.

Harper only reached out to China when Canada went through an economic pressure. Next to the U.S., China is the second most important trading partner of Canada.

TagsDandong, Peter's Coffee Shop, Julia Dawn Garratt, Kevin Garratt, Xinhua, State Security Bureau of Dandong, The Guardian, The Globe and Mail, Mary Anne Dehler, National Research Council, North Korea, Stephen Harper, U.S.